N.Y. Tax Law § 184-a: Additional metropolitan transportation business tax surcharge on transportation and transmission corporations and associations services

§ 184-a. Additional metropolitan transportation business tax surcharge

on transportation and transmission corporations and associations

services.

1. The term "corporation" as used in this section shall include an

association, within the meaning of paragraph three of subsection (a) of

section seventy-seven hundred one of the internal revenue code

(including a limited liability company), and a publicly traded

partnership treated as a corporation for purposes of the internal

revenue code pursuant to section seventy-seven hundred four thereof.

Every corporation, joint-stock company or association formed for or

principally engaged in the conduct of canal, steamboat, ferry (except a

ferry company operating between any of the boroughs of the city of New

York under a lease granted by the city), express, navigation, pipe line,

transfer, baggage express, omnibus, taxicab, telegraph or local

telephone business, or formed for or principally engaged in the conduct

of two or more such businesses, and every corporation, joint-stock

company or association formed for or principally engaged in the conduct

of a surface railroad, whether or not operated by steam, subway

railroad, elevated railroad, palace car, sleeping car or trucking

business or principally engaged in the conduct of two or more such

businesses and which has made an election pursuant to subdivision ten of

section one hundred eighty-three of this article, and every other

corporation, joint-stock company or association formed for or

principally engaged in the conduct of a transportation or transmission

business (other than a telephone business) except a corporation,

joint-stock company or association formed for or principally engaged in

the conduct of a surface railroad, whether or not operated by steam,

subway railroad, elevated railroad, palace car, sleeping car or trucking

business or principally engaged in the conduct of two or more such

businesses and which has not made the election provided for in

subdivision ten of section one hundred eighty-three of this article, and

except a corporation, joint-stock company or association principally

engaged in the conduct of aviation (including air freight forwarders

acting as principal and like indirect air carriers) and except a

corporation principally engaged in providing telecommunication services

between aircraft and dispatcher, aircraft and air traffic control or

ground station and ground station (or any combination of the foregoing),

at least ninety percent of the voting stock of which corporation is

owned, directly or indirectly, by air carriers and which corporation's

principal function is to fulfill the requirements of (i) the federal

aviation administration (or the successor thereto) or (ii) the

international civil aviation organization (or the successor thereto),

relating to the existence of a communication system between aircraft and

dispatcher, aircraft and air traffic control or ground station and

ground station (or any combination of the foregoing) for the purposes of

air safety and navigation, shall pay for the privilege of exercising its

corporate franchise, or of doing business, or of employing capital, or

of owning or leasing property in the metropolitan commuter

transportation district in such corporate or organized capacity, or of

maintaining an office in such district, a tax surcharge, which tax

surcharge, in addition to the tax imposed by section one hundred

eighty-four of this article, shall be computed at the rate of seventeen

percent of the tax imposed under such section for such taxable years or

any part of such taxable years after the deduction of any credits

otherwise allowable under this article; provided, however, that such

rates of tax surcharge shall be applied only to that portion of the tax

imposed under section one hundred eighty-four of this article after the

deduction of any credits otherwise allowable under this article which is

attributable to the taxpayer's business activity carried on within the

metropolitan commuter transportation district. Provided, however, that

for taxable years beginning in two thousand and thereafter, for purposes

of this subdivision the tax imposed under section one hundred

eighty-four of this article shall be deemed to have been imposed at the

rate of three-quarters of one percent, except that in the case of a

corporation, joint-stock company or association which has made an

election pursuant to subdivision ten of section one hundred eighty-three

of this article, for purposes of this subdivision the tax imposed under

section one hundred eighty-four of this article shall be deemed to have

been imposed at the rate of six-tenths of one percent.

The term "local telephone business" shall have the same meaning as

such term is used in section one hundred eighty-four of this article.

The term "telecommunication services" shall have the meaning ascribed to

such term in section one hundred eighty-six-e of this article.

2. (a) A transportation and transmission corporation shall determine

the portion of its tax attributable to business activity carried on in

the metropolitan commuter transportation district (except as otherwise

provided for in this subdivision) by multiplying the tax imposed under

section one hundred eighty-four of this article by a fraction, the

numerator of which is the taxpayer's mileage within the metropolitan

commuter transportation district, and the denominator of which is the

taxpayer's mileage within the entire state during the period covered by

the report or reports required by this article.

(b) A corporation principally engaged in the operation of vessels

shall determine the portion of its tax attributable to business activity

carried on in the metropolitan commuter transportation district during

the period covered by the report or reports required by this section by

multiplying the tax imposed under section one hundred eighty-four of

this article by a percentage which represents the ratio of the aggregate

number of working days of the vessels it owns or leases in all navigable

lakes, rivers, streams and waters within the metropolitan commuter

transportation district to the aggregate number of working days of all

the vessels it owns or leases within the entire state and in the New

York territorial waters during such period.

(c) A telephone or telegraph corporation shall determine the portion

of its tax attributable to business activity carried on within the

metropolitan commuter transportation district by multiplying the tax

imposed under section one hundred eighty-four of this article by the

ratio of its total gross operating revenue from transmission services

performed wholly within the metropolitan commuter transportation

district to its total gross operating revenue from transmission services

performed within the entire state during the period covered by the

report or reports required under this article.

(d) With respect to other types of transportation and transmission

corporations or where the tax commission decides that with respect to a

certain corporation the method prescribed above does not fairly and

equitably reflect gross earnings from all sources within the

metropolitan commuter transportation district, the tax commission shall

prescribe methods of allocation or apportionment which fairly and

equitably reflect gross earnings from all sources within such district.

Also, the tax commission may, in order to properly reflect gross

earnings, determine the report period in which any item of gross

earnings shall be included without regard to the method of accounting

employed by a corporation taxable hereunder.

3. The term metropolitan commuter transportation district as used in

this section shall be defined pursuant to section twelve hundred

sixty-two of the public authorities law.

4. Notwithstanding any contrary provisions of state or local law, the

tax surcharge imposed under this section shall not be allowed as a

deduction in the computation of any state or local tax imposed under

this chapter or any chapter or local law. Furthermore, the credits

otherwise allowable under this article shall not be allowed against the

tax surcharge imposed by this section.

5. The provisions concerning reports under section one hundred

ninety-two of this article shall be applicable to this section. An

extension pursuant to section one hundred ninety-three shall be allowed

only if a taxpayer files with the commissioner an application for

extension in such form as said commissioner may prescribe by regulation

and pays on or before the date of such filing in addition to any other

amounts required under this article, either ninety percent of the entire

tax surcharge required to be paid under this section for the applicable

period, or not less than the tax surcharge shown on the taxpayer's

report for the preceding taxable year, if such preceding taxable year

was a taxable year of twelve months. The tax surcharge imposed by this

section shall be payable to the commissioner in full at the time the

report is required to be filed, and such tax surcharge or the balance

thereof, imposed on any taxpayer which ceases to exercise its franchise

or be subject to the tax surcharge imposed by this section shall be

payable to the commissioner at the time the report is required to be

filed, provided such tax surcharge of a domestic corporation which

continues to possess its franchise shall be subject to adjustment as the

circumstances may require; all other tax surcharges of any such

taxpayer, which pursuant to the foregoing provisions of this section

would otherwise be payable subsequent to the time such report is

required to be filed, shall nevertheless be payable at such time. All of

the provisions of this article presently applicable to section one

hundred eighty-four of this article are applicable to the tax surcharge

imposed by this section.